Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-1 # Copyright © 2015 Pearson Education, Inc. Leadership and Decision Making 9

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-2 Copyright © 2015 Pearson Education, Inc. Introduction In this chapter we –look at the nature of leadership. –describe early approaches to leadership, as well as the situational perspective accepted today –examine leadership through the eyes of followers as well as alternatives to leadership –describe the important related concept of decision making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2015 Pearson Education, Inc Define leadership and distinguish it from management 2.Summarize early approaches to the study of leadership 3.Discuss the concept of situational approaches to leadership 4.Describe transformational and charismatic perspectives on leadership

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2015 Pearson Education, Inc Identify and discuss leadership substitutes and neutralizers 6.Discuss leaders as coaches and examine gender and cross-cultural issues in leadership 7.Describe strategic leadership, ethical leadership, and virtual leadership 8.Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-5 Copyright © 2015 Pearson Education, Inc. The Nature of Leadership Leadership –the processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-6 Copyright © 2015 Pearson Education, Inc. Distinctions Between Management and Leadership

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-7 Copyright © 2015 Pearson Education, Inc. Leadership and Power Power –the ability to affect the behavior of others Legitimate Power –power granted through the organizational hierarchy Reward Power –the power to give or withhold rewards Coercive Power –the power to force compliance by means of psychological, emotional, or physical threat

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-8 Copyright © 2015 Pearson Education, Inc. Leadership and Power (cont.) Referent Power –power based on identification, imitation, loyalty, or charisma Expert Power –power derived from information or expertise

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-9 Copyright © 2015 Pearson Education, Inc. Early Approaches to Leadership Trait Approach to Leadership –focused on identifying the essential traits that distinguished leaders –intelligence, dominance, self-confidence, energy, activity (versus passivity), and knowledge about the job

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-10 Copyright © 2015 Pearson Education, Inc. Early Approaches to Leadership (cont.) Behavioral Approach to Leadership –focused on determining what behaviors are employed by leaders

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-11 Copyright © 2015 Pearson Education, Inc. Behavioral Approach to Leadership Task-Focused Leader Behavior –leader behavior focusing on how tasks should be performed in order to meet certain goals and to achieve certain performance standards Employee- Focused Leader Behavior –leader behavior focusing on satisfaction, motivation, and well-being of employees

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-12 Copyright © 2015 Pearson Education, Inc. The Situational Approach to Leadership

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-13 Copyright © 2015 Pearson Education, Inc. The Situational Approach to Leadership (cont.) Path–Goal Theory –theory of leadership that is a direct extension of the expectancy theory of motivation Decision Tree Approach –approach to leadership that provides decision rules for deciding how much participation to allow Leader–Member Exchange (lmx) Model –approach to leadership that stresses the importance of variable relationships between supervisors and each of their subordinates

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-14 Copyright © 2015 Pearson Education, Inc. Leadership through the Eyes of the Followers Transformational Leadership –the set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively Transactional Leadership –comparable to management, it involves routine, regimented activities

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-15 Copyright © 2015 Pearson Education, Inc. Leadership Through the Eyes of Followers (cont.) Charisma –a form of interpersonal attraction that inspires support and acceptance Charismatic Leadership –type of influence based on the leader’s personal charisma

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-16 Copyright © 2015 Pearson Education, Inc. Crucial Elements of Charismatic Leadership 1.Charismatic leaders envision likely future trends and patterns, set high expectations for themselves and for others, and behave in ways that meet or exceed those expectations. 2.Charismatic leaders energize others by demonstrating personal excitement, personal confidence, and consistent patterns of success. 3.Charismatic leaders enable others by supporting them, empathizing with them, and expressing confidence in them.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-17 Copyright © 2015 Pearson Education, Inc. Special Issues in Leadership Leadership Substitutes –individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance Leadership Neutralizers –factors that may render leader behaviors ineffective

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-18 Copyright © 2015 Pearson Education, Inc. Leadership Substitutes and Neutralizers

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-19 Copyright © 2015 Pearson Education, Inc. The Changing Nature of Leadership Leaders as Coaches –from directive overseer to mentor Gender and Leadership –understanding the differences and dynamics in the approaches of women and men to leadership

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-20 Copyright © 2015 Pearson Education, Inc. The Changing Nature of Leadership (cont.) Cross-Cultural Leadership –effects of an individual’s native culture on his or her approach to leadership when functioning in another culture

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-21 Copyright © 2015 Pearson Education, Inc. Emerging Issues in Leadership Strategic Leadership –leader’s ability to understand the complexities of both the organization and its environment and to lead change in the organization so as to enhance its competitiveness

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-22 Copyright © 2015 Pearson Education, Inc. Emerging Issues in Leadership (cont.) Ethical Leadership –leader behaviors that reflect high ethical standards –maintain high ethical standards –hold others in the organization to the same standards Virtual leadership –leadership in settings where leaders and followers interact electronically rather than in face-to-face settings

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-23 Copyright © 2015 Pearson Education, Inc. Leadership, Management, and Decision Making Decision Making –choosing one alternative from among several options Decision-Making Process –recognizing and defining the nature of a decision situation, identifying alternatives, choosing the “best” alternative, and putting it into practice

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-24 Copyright © 2015 Pearson Education, Inc. Types of Decisions Programmed Decision –decision that is relatively structured or recurs with some frequency (or both) Nonprogrammed Decision –Decision that is relatively unstructured and that occurs with low frequency

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-25 Copyright © 2015 Pearson Education, Inc. Decision-Making Conditions State of Certainty –when the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative State of Risk –when the availability of each alternative and its potential payoffs and costs are all associated with probability estimates

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-26 Copyright © 2015 Pearson Education, Inc. Decision-Making Conditions (cont.) State of Uncertainty –when the decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-27 Copyright © 2015 Pearson Education, Inc. Rational Decision Making Recognizing and defining the decision situation Identifying alternatives Evaluating alternatives Selecting the best alternative Implementing the chosen alternative Following up and evaluating the results

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-28 Copyright © 2015 Pearson Education, Inc. Rational Decision Making (cont.)

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-29 Copyright © 2015 Pearson Education, Inc. Behavioral Aspects of Decision Making Coalition –an informal alliance of individuals or groups formed to achieve a common goal Intuition –an innate belief about something, often without conscious consideration

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-30 Copyright © 2015 Pearson Education, Inc. Behavioral Aspects of Decision Making (cont.) Escalation of Commitment –condition in which a decision maker becomes so committed to a course of action that she or he stays with it even when it appears to have been wrong Risk Propensity –extent to which a decision maker is willing to gamble when making a decision

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-31 Copyright © 2015 Pearson Education, Inc. Applying What You’ve Learned 1.Define leadership and distinguish it from management 2.Summarize early approaches to the study of leadership 3.Discuss the concept of situational approaches to leadership 4.Describe transformational and charismatic perspectives on leadership

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-32 Copyright © 2015 Pearson Education, Inc. Applying What You’ve Learned (cont.) 5.Identify and discuss leadership substitutes and neutralizers 6.Discuss leaders as coaches and examine gender and cross-cultural issues in leadership 7.Describe strategic leadership, ethical leadership, and virtual leadership 8.Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9-33 Copyright © 2015 Pearson Education, Inc.